Lottery transaction mechanisms

ABSTRACT

A number of mechanisms can reduce transaction costs and increase the economic viability of a number of products. A combination instant lottery ticket and debit card makes it possible to issue prepaid debit cards having a relatively low monetary value. A combination on-line ticket or receipt and debit card can automate the prize paying process, simplifying the retailer&#39;s responsibilities while reducing the potential for fraud. Various cash flow and authentication techniques, such as age and location verification, nano payment methods and spam filters based on these mechanisms are also described. Instant lottery tickets, and in particular, losing tickets, can be provided with a small residual value by placing account information on the ticket. In another version, a lottery ticket can be combined with a payment card that operates as a closed payment system whereby the payment card can only be used with a specified vendor.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a Continuation in Part of U.S. patent applicationSer. No. 14/998,710, filed Feb. 4, 2016, the disclosure of which ishereby incorporated herein by reference in its entirety.

FIELD OF THE DESCRIBED SYSTEMS

The described transaction cards and methods relate generally to cardsthat can be used in internet and web based transactions, as well asin-person and telephone transactions and more particularly to consumerpurchased cards that can be used for multiple functions such as lotterytickets, sweepstakes, debit, or gift cards; in both open and closedlooped payment systems.

BACKGROUND

Transaction costs are one of the problems associated with variousconsumer trade having relatively low monetary value. In the instantlottery industry, for example, the costs of redeeming winning lotterytickets involves a significant amount of retail clerical time along withthe necessity of the retailer to finance the amount of low value,winning tickets with all the accounting activity that the redemptionprocess requires. Moreover, for lottery games that have a large numberof mid-tier winners, for example, $25 to $100, the redemption costs canseriously discourage retailers from carrying this product.

Prepaid transaction cards such as gift or debit cards are other examplesof the effect that transaction costs can have on the economics of theseproducts. For low value debit cards, for example $20, the costs ofissuing the cards as well as processing payments from these cards canmake them economically impractical.

Micro or nano-payment systems provide further examples of the effects oftransaction costs. One of the objects of a micro or nano-paymentapproach is to maintain and take advantage of a very high volume of website viewers by offering content for a very low price. For example, anewspaper could make its articles available on-line for 50 or less.Other variations can include charging fractions of cents, that is, asmaller amount than the smallest possible amount of hard currency, forequally fractional amounts of content. One example involves charging atenth of a cent for each web page in an online magazine. Another usewould be to automatically charge, for instance, a tenth of a cent tosend an electronic mail to a particular address. While this type ofemail charge system would be trivial for normal mail usage, it couldseriously impact the economics of broadcast spam. However, most suchapplications are impractical from an economic standpoint due totransaction costs.

Establishing proof, that may be legally required, of age and locationfor certain types of transactions such as the purchase of alcohol ortobacco over the internet as well as internet gaming can significantlyincrease the costs involved in such transactions.

Lottery related products such as the products described in U.S. PatentPublication Nos. US 2001/00395511, US 2004/0176158, 2004/0259626, and US2005/0149393, especially using instant lottery tickets of the typedescribed in U.S. Pat. No. 6,875,105, have not addressed theconsiderations discussed above.

SUMMARY

Described are a number of mechanisms that can reduce transaction costsand increase the economic viability of a number of products. One exampleis a product having its value based on a random event combined with orassociated with a defined value instrument such as a debit, credit orgift card that makes it possible to issue prepaid debit cards that havea relatively low monetary value. Various cash flow and authenticationtechniques such as age verification and spam filters based on thesemechanisms are also described.

Embodiments of the invention include:

1. A card comprising:

-   -   a lottery ticket portion;    -   a defined value portion having a first predetermined value;    -   an inventory control serial number portion containing an        inventory control serial number;    -   an account number applied to the defined value portion, wherein        the account number identifies an account having a value that        includes the first predetermined value and at least a portion of        the winning amount of the lottery ticket portion;    -   a cryptographic salt portion; and    -   a scratch-off coating portion covering at least both the account        number portion and the cryptographic salt portion;    -   wherein data respectively associated with both the account        number and the cryptographic salt portions are used to activate        the card for use.

2. The card of aspect 1, wherein the cryptographic salt portion includesa check digit or character.

3. The card of aspect 2, wherein the check digit or character is amodulo function of both the account number portion and the remainder ofthe cryptographic salt portion.

4. The card of aspect 1, wherein the account number and thecryptographic salt portion are embodied as barcode indicia.

5. The card of aspect 4, wherein the barcode indicia are embodied inCode 128 format.

6. The card of aspect 4, wherein the barcode indicia are embodied inCode 39 format.

7. The card of aspect 4, wherein the barcode indicia are embodied inPortable Data Format (PDF) 417 format.

8. The card of aspect 4, wherein the barcode indicia are embodied in QR(Quick Response) format.

9. A card activation system including a set of printed cards comprising;

-   -   a lottery central site;    -   an instant ticket provider;    -   an issuing processor and bank;    -   at least one of an internet activation web site and a telephone        activation system;    -   at least one card for purchase by a consumer with an account        number portion containing an account number, a cryptographic        salt portion containing a cryptographic salt, and an inventory        control number portion containing an inventory control number;        and    -   a database created by the instant ticket provider linking the        inventory control number of the set of cards with the account        number and the cryptographic salt;    -   such that any link between the inventory control number and the        account number remains undecipherable until the cryptographic        salt is known to the system.

10. The system of aspect 9, wherein a hash keyed database is used as acryptographic protocol to correlate card cleartext inventory controlnumbers with hashed values of the account number and the cryptographicsalt.

11. The system of aspect 10, wherein the hash keyed database has hashesthat are calculated using a Secure Hash Algorithm Two (SHA-2) formatapplied to the account number and the cryptographic salt.

12.The system of aspect 9, wherein the cryptographic salt includes acheck digit or character.

13. The system of aspect 9, wherein an asymmetrically encrypted databaseis used as a cryptographic protocol to correlate card cleartextinventory control numbers with hashed values of the account number andthe cryptographic salt.

14. The system of aspect 9, wherein a symmetrically encrypted databaseis used as a cryptographic protocol to correlate card cleartextinventory control numbers with hashed values of the account number andthe cryptographic salt.

15. The system of aspect 9, wherein a linear congruential generator isused as a cryptographic protocol to correlate card cleartext inventorycontrol numbers with hashed values of the account number and thecryptographic salt.

16. The system of aspect 15, wherein the cryptographic salt provides astarting seed and number of iterations to the linear congruentialgenerator, wherein the linear congruential generator generates outputdata that functions as a pointer in the database.

17. The system of aspect 9, further comprising:

-   -   shipping at least a portion of the cards to retailers for        activation;    -   determining which of the cards have been activated;    -   linking the account number and the inventory control number for        each activated card;    -   transmitting the account numbers for the activated cards to the        issuing processor and bank; and    -   performing a cryptographic function on the account number and        the cryptographic salt to enable at least one of validation and        activation of the account without any knowledge of physical        logistics of distributing and selling the cards.

18. The system of aspect 17, further comprising transmitting to theissuing processor and bank at least a portion of the funds required toredeem the activated cards.

19. The system of aspect 17, wherein printing the cards includesprinting a set of packs of cards, wherein each of the packs contains apredetermined number of the cards;

the system further comprising:

-   -   computing a Guaranteed Low End Prize Structure (GLEPS) value for        the packs, wherein the GLEPS value includes the defined value        portion of the cards; and    -   depositing funds to a payment institution equal to the GLEPS        value for at least a portion of the packs.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a front plan view of a first representative example of acombination instant lottery ticket and debit card having a low winningamount showing scratch-off coatings intact;

FIG. 2 is a front plan view of the first representative example of thecombination instant lottery ticket and debit card of FIG. 1 showing thescratch-off coatings removed;

FIG. 3 is a front plan view of a second representative example of acombination instant lottery ticket and debit card having no winningamount showing scratch-off coatings intact;

FIG. 4 is a front plan view of the second representative example of thecombination instant lottery ticket and debit card of FIG. 3 showing thescratch-off coatings removed;

FIG. 5 is a front plan view of a third representative example of thecombination instant lottery ticket and debit card having a high winningamount showing the scratch off coatings removed;

FIG. 6 is a plan view of the back of the debit card portions of theinstant lottery ticket and debit cards of FIGS. 1-5;

FIG. 7 is a plan view of an alternate back of the debit portions of theinstant lottery ticket and debit cards of FIGS. 1-5;

FIG. 8 is a flow chart illustrating a first method of producing,distributing, selling and using the instant lottery ticket and debitcards of FIGS. 1-5;

FIG. 9 is a flow chart illustrating a second method of producing,distributing, selling and using the instant lottery ticket and debitcards of FIGS. 1-5;

FIG. 10 is a flow chart illustrating another method of producing,distributing, selling, and using the instant lottery ticket and debitcards of FIGS. 1-5;

FIG. 11 is a front plan view of a representative example of a plasticdebit or credit or gift card that can be linked to a separate lotteryticket or used as a standalone lottery instrument;

FIG. 12 is a front plan view of a first representative example of alottery ticket linked to a plastic gift card of the type shown in FIG.11;

FIG. 13 is a front plan view of lottery ticket of FIG. 12 with thescratch-off coating removed;

FIG. 14 is a front plan view of a second representative example of alottery ticket linked to a plastic gift card of the type shown in FIG.12 with the scratch-off coating removed;

FIG. 15 is a flow chart illustrating a method of producing,distributing, selling and using instant ticket or debit or gift cards ofthe type shown in FIGS. 12, 13, and 14;

FIG. 16 is a front plan view of a fourth representative example of acombination instant lottery ticket/debit card for use in ageverification showing the scratch-off coatings removed;

FIG. 17 is a flow chart illustrating one method of producing,distributing, selling, and using the instant lottery ticket or debitcards of FIG. 16;

FIG. 18 is a flow chart illustrating one method of producing,distributing, selling and using the instant lottery ticket and debitcards of the type shown in FIGS. 1-5 that can be used in connection withmicro or nano payments;

FIG. 19 is a flow chart illustrating operation of a spam filter;

FIG. 20 is a flow chart illustrating account transfers;

FIG. 21 is a flow chart illustrating examples of cash flows related tocards of the type shown in FIGS. 1-5;

FIG. 22 is a front plan view of an on-line printed lottery receipt typeticket having an integrated debit card as a prize payment mechanism;

FIG. 23 is a front plan view of a representative example of a losinginstant lottery ticket having residual value information printedthereon;

FIG. 24 is a front plan view of the losing instant lottery ticket ofFIG. 23 having the residual value information printed covered by ascratch-off coating;

FIG. 25 is a front plan view of a representative example of a winninginstant lottery ticket having residual value information printedthereon;

FIG. 26 is a flow chart illustrating a method of producing losinglottery tickets with embedded micro or nano payments shown in FIGS. 23,24, and 25;

FIG. 27 is a front plan view of a first representative example of acombination instant lottery ticket payment card for use with a closedpayment system;

FIG. 28 is a front plan view of a second representative example of acombination instant lottery ticket payment card for use with a closedpayment system with its scratch-off coating removed;

FIG. 29 is a front plan view of a third representative example of acombination instant lottery ticket payment card for use with a closedpayment system with its scratch-off coating removed;

FIG. 30 is a front plan view of a fourth representative example of acombination instant lottery ticket payment card for use with a closedpayment system;

FIG. 31 is a flow chart illustrating a first method of producing,distributing, selling and using the hybrid instant ticket and closedpayment card of the type shown in FIGS. 27, 28, 29 and 30;

FIG. 32 is a flow chart illustrating a second method of producing,distributing, selling and using the hybrid instant ticket and closedpayment card of the type shown in FIGS. 27, 28, 29 and 30;

FIG. 33 is a flow chart illustrating another method of securelyproducing, distributing, and activating the instant lottery ticket anddebit cards of FIGS. 1 thru 5 that can utilize an existing lotteryinstant ticket activation system;

FIG. 34A shows an instant ticket and debit card, along with a flow chartillustrating how secure cryptographic hashes can be generated to becompatible with the method of FIG. 33;

FIG. 34B shows an instant ticket and debit card, along with a flow chartillustrating how secure cryptographic hashes can be generated withcryptographic salt embodied as a barcode, which compatible with themethod of FIG. 33;

FIG. 35A shows an instant ticket and debit card, along with a flow chartillustrating how the secure cryptographic hashes of FIG. 34 is linked tothe lottery clear text inventory control number; and,

FIG. 35B shows an instant ticket and debit card, along with a flow chartillustrating an alternate preferred embodiment of how the securecryptographic hashes of FIG. 34 is linked to the lottery clear textinventory control number.

DETAILED DESCRIPTION

FIGS. 1 and 2 depict a first representative example of a defined valuecard having a value at least partially determined by a lottery event.The term defined value card is used herein to encompass cards or similarinstruments such as debit cards, Automated Teller Machine (ATM) cards,credit cards, or gift cards that can be used for purchase transactionsand generally, in the case of debit and gift cards, have a predeterminedor prepaid value. In the example of FIGS. 1 and 2 a card 100, printed ona paper substrate 102, includes two components: an instant lotteryticket 105 and with a defined value card 120, in this case a prepaiddebit card. Methods of making instant lottery tickets are well known inthe art as, for example, described in U.S. Pat. No. 6,875,105, which isincorporated herein by reference. Generally the term lottery instrumentas used herein is intended to encompass the various instruments having avalue not apparent to a consumer at the time the consumer acquires theinstrument. The value can be based on random criteria or events such as:play indicia printed underneath a scratch-off coating on instant lotterytickets; on-line lottery tickets; lotto computer based outcomes; theoutcomes of gaming machines; drawings; and the outcomes of futureathletic contests. The instant lottery ticket 105 is provided as oneembodiment of a suitable lottery instrument. Similarly, the debit card120 is described herein as the preferred embodiment of a defined valuecard, but again it should be understood that other embodiments such ascredit, gift or ATM cards are possible and might be more desirable undercertain circumstances. Preferably, the lottery ticket portion 105 andthe debit card portion 120 are identified as such by a display printing104 and a display printing 106 respectively on the card 100. The instantlottery ticket and debit card embodiment 100 is used as an environmentfor describing the products, systems and methods presented below. Ingeneral, by combining an instant lottery ticket 105 and a prepaid debitcard 120 on a single preprinted card 100 having the substrate 102, ahybrid product can be provided that can: lower costs to suppliers;reduce redemption costs to retailers; and provide consumers with ananonymous, secured, on-line payment vehicle at lower cost.

The hybrid product or printed card 100 can include: a removableScratch-Off-Coating (SOC) 108 of the type that normally covers, as shownin FIG. 2, a set of printed instant lottery indicia, including: a prizevalue 110; a set of play indicia 115; and a void if removed indiciaunder the SOC 140 on the lottery ticket portion 105. Also, the SOC 108in this embodiment covers a set of information indicated at 125 printedon the debit card portion 120 including: a debit card account number145; an optional pseudorandomly assigned name 155; a Card ID (CID) orsecurity code 150; and an amount 160 initially deposited on the card120. Preferably the account number 145 serves as an identifier of anaccount in a payment institution. In this embodiment, the SOC 108 isintended to obscure the debit card information 125 until the purchaserof the product removes it. Here, the prepaid debit card 120 is attachedto the instant lottery game ticket 105 that can be designed, produced,purchased, and played according to current accepted instant lotterybusiness practices. As such, the hybrid instant ticket and debit card100 can be distributed within existing distribution networks for instantlottery games. After playing the instant game as illustrated in FIG. 2,the consumer can remove the SOC 108 obscuring the debit card information125 to confirm the total amount deposited in the debit card accountprinted at 160. In this example, removal of the SOC 108 over theinformation 125 will reveal the account number 145, the CID securitycode 150, the pseudorandomly assigned name 155, and the initial cardvalue 160. This information 125 can supply the consumer with all of theinformation necessary to use the debit card 120 for standard debit cardtransactions. As with typical credit, debit, or gift cards, the debitcard 120 in this embodiment can include an expiration date 130 at whichpoint the debit card would no longer be valid. For convenience, aperforation 135 can be added to the substrate 102 to aid the consumer inseparating the debit card portion 120 from the scratch-off lotteryticket portion 105. Typically this separation would be done by theconsumer after the instant ticket 105 is played.

In this embodiment, a purchase price of the instant ticket and debitcard 100 as printed at 180 as display printing includes the lotteryinstant game and the prepaid debit card. For example, a $20 prepaiddebit card 120 bundled with a $5 instant game ticket 105 could be soldfor a total of $25. In FIG. 2, the ticket 105 is a winner as indicated,by the play indicia, a set of three dots, shown at 115. In addition, aprize amount is printed at 110. In this example, the debit card accountbalance 160 is the prize value shown at 110 rather than a $20 debit cardminimum value 182 printed as display printing on the card 100.Alternatively, the amount won on the instant ticket can be added to theguaranteed minimum of the debit card 120; in this case, the amount shownat 160 would be $70, that is, $20 minimum debit card plus $50 winnings.

FIGS. 3 and 4 illustrate an example where the instant lottery ticket 105is not a winner as indicated by the play indicia 115 in FIG. 4. Sincethe lottery ticket 105 is not a winner, the debit card 120 will have thebase value of $20 as depicted at 160.

In these examples, preferably the retail sales price of the cards 100,including the prize structure and the non-prize component of the lotterygame revenue, would be designed to cover the typical costs of thelottery game as well as the administrative costs of the debit cards.Thus, the economics of a lottery game can enable the typical transactionfees related to the issuance and use of the debit card 120 to be coveredby the non-prize component of lottery game revenue.

FIG. 5 illustrates another embodiment of the card 100. While the hybridinstant ticket and debit card 100 can be an effective method of currencytransfer for relatively small amounts of money, there are laws invarious jurisdictions, for example money laundering, tax reporting,etc., that might limit its usage for larger amounts of currency, forexample, amounts over $500. While it is possible to operate a hybridinstant ticket debit card 100 lottery with the maximum prize notexceeding the legal limit for funds on an anonymous debit card such asthe card 120, this might be undesirable under certain circumstances.Another approach, as illustrated in FIG. 5 where the play indicia 115indicates at 110 that the winning amount is $5,000, is to permithigh-tier winning tickets in excess of any legal limit for anonymousfunds; but, to treat these cards 100 as special case conventionalinstant lottery tickets where the revealed debit card area 155 simplyinforms the consumer that a high tier prize has been won and that thecard 100 should be redeemed in a specified manner as directed by thelottery. For example, the consumer can be directed in the instructionsin 155 to take the instant ticket and debit card 100 to a lottery officefor cash, check, or an identified debit card as a form of payment.

FIGS. 6 and 7 illustrate alternate backs of the debit card 120. In bothcases the backs of the cards 120 can be printed with legally requiredinstructions 161 related to a debit card and can include an instantticket unique barcode 165 that can be, for example, an inventory controlnumber barcode. FIG. 7 depicts an alternate back of the debit card 120that includes a magnetic stripe 170. However, there are situations wherethis configuration might not be preferred; because if the magneticstripe includes the account number 145, the magnetic stripe 170 incertain lottery systems can potentially be used to pick-out winningtickets. Here, one tradeoff would be greater ease of use at retailerestablishments versus a greater production cost and greater securityrisk or a more complicated activation process as discussed below.Conversely, there can be other situations, where the use of the barcode165 might not be desirable and the magnetic stripe would be moredesirable. For example, the card portion 120 can be configured as astandard debit, credit, or an ATM type card 1100 as shown in FIG. 11. Inthis example, the card portion 120 can be used by the consumer innormal, in-person, transactions with the lottery winnings beingassociated with the card's account number 145.

In a preferred mode of operation, at the time the instant ticket debitcard 100 is purchased by a consumer, the debit card account number 145is activated in a central database and the funds become available foruse by the debit cardholder. The revenue from the card purchaser canthen be delivered to the account at the retailer's bank during asettlement process.

FIG. 8 illustrates a first method of producing and selling hybridinstant ticket debit cards of the type 100. In this case it iscontemplated that the hybrid instant ticket debit card 100 would bedistributed within an existing distribution network already in place forinstant lottery games. However, in this case there can remain the addedtasks of organizing the debit account numbers 145 and synchronizingdeposits with the card-issuing bank.

The flowchart of FIG. 8 also outlines one method of completing thesetasks. Beginning at a block 200, an issuing bank creates and transmits alarge block of new or unused potential debit card account numbers 145 toan institution responsible for printing lottery tickets. Typically thiswould be a lottery ticket manufacturer under contract with a statelottery administration to supply lottery tickets. Next, as representedat a block 205, the lottery ticket printing institution merges the blockof debit card account numbers 145 with a set of instant ticket inventorycontrol numbers, for example of the type contained in the barcode 165,thereby linking the instant ticket prize values with their associatedaccount numbers 145.

In some cases it might be desirable that the block contain a largernumber of debit card account numbers 145 than the total number oftickets 100 so as to allow for waste that typically occurs during theprinting process. Since it is generally difficult to determine ahead ofthe printing process which instant tickets will become waste, a largerpool of pre-assigned debit account numbers 145 might be desirable toensure that there are a sufficient, number of account numbers 145available to print the desired number of tickets 100. Therefore in thisembodiment, after the print run is concluded at 205 and the desirednumber of tickets 100 are printed, the lottery printing institution, asshown at a block 210 will transmit the subset of account numbers 145corresponding to tickets 100 actually printed.

For the purposes of describing the various embodiments of the cards 100,the block 205 also represents a conventional lottery ticket printingapparatus which can for example print such card variable informationsuch as the play indicia 115, the prize value 110 and the information160 on the card substrate 102 using for instance an ink jet printer. Theprinting apparatus then can cover this variable information with the SOC108 and print such display indicia as the purchase price 180, debit cardminimum value 182, and the card portion identifiers 104 and 106.

Next in this example, as shown at a block 215, the lottery printingorganization then physically ships the printed tickets 100 to thelottery's warehouse for distribution to a retailer base. When thetickets 100 are shipped to the retailers, or, when the retailersactivate packs of the tickets 100, where pack activation is logged bythe lottery, or when the individual tickets are activated at the time ofpurchase, the lottery transmits the listing of all activated instantticket inventory control numbers 165 to the lottery ticket printinginstitution. The lottery ticket printing institution then can link theinventory control numbers 165 to the printed set of account numbers 145as shown at a block 220 preferably using a secure algorithm typicallyused for this purpose in the instant lottery industry. It should benoted that it is desirable to ensure that the set of account numbers 145associated with inventory control numbers 165 is maintained in a securefashion to maintain security against pick-outs. As depicted at block225, the resulting list of account numbers 165 is then transmitted tothe bank for activation along with the associated amounts of money to bedeposited with each account number to a payment institution such asbank. In this embodiment, the role of the payment institution is to makepayments from the account corresponding to the defined value card 120to, for example, a vendor from whom a customer has made a purchase usingthe defined value card 120 or to dispense cash from an ATM machine. Apayment institution can be a bank, a credit card company or otherinstitution that is responsible for financing the defined value card120.

Preferably, as shown at a block 230, upon receipt of the account numbersto be activated, the bank invoices the lottery for the necessary fundsto be deposited into the debit card accounts. Alternatively, the bankcan invoice the lottery ticket printing institution for transfer offunds. Still another possibility is for the lottery to deposit all fundsfor all debit card accounts at one time. This method has the advantageof fewer interactions, but with the disadvantage of moving a large sumof money at one time. In any case, the funds are preferably depositedwhen the accounts are activated or shortly thereafter as indicated at ablock 235.

It should also be noted, that if the individual ticket 100 is activatedat the time of sale, the above activation process would remainessentially the same, with individual tickets 100 being activatedinstead of packs. By definition, in this activation-at-time-of-saleembodiment, the tickets 100 would have to be sold or otherwise bedistributed to consumers before the activation process could occur.

At this point in the example of FIG. 8, as illustrated by a block 240,the retailers place the received tickets on sale and after whichconsumers, as shown at a block 245, purchase the hybrid instant ticketdebit card 100. Then the consumer scratches off the SOC 108 and readsthe amount 160 deposited on the debit card as well as the account number145 and other identifying information. The consumer can then use thisinformation to execute financial transactions, for example, an on-linepurchase as shown at a block 250.

An example of the completion of a consumer transaction is provided in ablock 255. Here, the store or vendor where the purchase is madetransmits the debit card account number 145 and other information to thebank that confirms the account has sufficient funds for the purchase asindicated at a block 260, with the vendor finally reimbursed by the bankas shown in block 265.

FIG. 9 is an illustration of an alternative embodiment of the card 100distribution method of FIG. 8. However, in the embodiment of FIG. 9, thelottery can use a computed value related to the value of the debit cards120 for depositing funds in the bank. In this example shown in a step230′, the funds to be deposited into the debit card accounts arecalculated by multiplying the number of packs shipped to retailers bythe number of tickets 100 per pack then multiplying the resultingproduct times the guaranteed minimum value of the debit card 120 andadding the product of the number of packs shipped and the Guaranteed LowEnd Prize Structure (GLEPS) value per pack for the given game. A GLEPSvalue is normally defined as the minimum value of the prizes per pack oftickets that is assured per game; for example, if a pack of one hundred$1 lottery tickets 100 has a GLEPS percentage of 35%, then the GLEPSvalue for the example pack would be $35. In this variation of themethod, the lottery adds the product of the number of tickets 100shipped and the guaranteed minimum value embedded on each debit card120, such as $20, to the product of the number of Packs shipped and theGLEPS value per pack:

F=(P×G)+((P×T _(p))×M)

-   -   Where: F=Funds to be transferred    -   P=Number of Packs shipped to Retailers    -   G=GLEPS value per Pack    -   T_(p)=Tickets per Pack    -   M=Minimum Value of Funds on a Debit Card

In the method of FIG. 9, the rest of the distribution can be identicalto the embodiment of FIG. 8. Thus, this embodiment can generally be thesame as the previous embodiment, with the exception that the lotteryfunds the issuing bank with an average value per pack rather than theactual value. This embodiment has the added security advantage ofreducing the number of people cognizant of higher prize value ticketsbeing shipped at any time. It should be noted that if this alternateembodiment is employed, an issuing bank might deem it necessary toprefund the accounts with the total of all high tier prizes, that is,prizes not covered by the GLEPS value, to ensure that the bank does notoperate at a loss.

Still another embodiment would be for the issuing bank to activate allof the account numbers 145, once they are transmitted from the lotteryprinter 210, with deferred funding for the activated accounts calculatedby the GLEPS method 230′. This embodiment of the method can have theadvantage of completely eliminating the step 220 of the lottery printerdecoding instant ticket inventory numbers 165 to debit account numbers145 thereby further isolating the knowledge base of debit accountnumbers 145 to lottery inventory control numbers 165. However, thismethod under certain circumstances might have the disadvantage of havingall of the debit account numbers activated while the tickets 100 arestill in the lottery's warehouse or in transit, resulting in possiblesecurity risks.

FIG. 10 depicts in flow chart form yet another alternative embodiment ofa hybrid instant ticket and debit card distribution method. In thismethod, the bank responsible for issuing the debit card numbers at ablock 1000 transmits at a block 1005 a large block of new or unusedpotential debit card account numbers 145 to the lottery ticket printinginstitution. Here, at 1005, after the print run is concluded and thedesired number of tickets 100 is printed, the lottery printinginstitution transmits the subset of account numbers 145 actually printedalong with the associated amounts of money to be deposited with eachaccount number 145 to the issuing bank as well as physically shipping ata block 1015 the printed tickets 100 to the lottery's warehouse fordistribution to the retailer base.

However, in this embodiment the method of activation, described below ina pair of blocks 1030 and 1035, allows for the account numbers 145 to beindependent of any lottery inventory numbering system. In this case, thelottery printing institution can alternatively merge the block ofaccount numbers 145 with associated prize values at the block 1005 andtransmit the account numbers 145 and linked prize values 110 back to theissuing bank or other institution at a block 1010.

In either case, the tickets are distributed to retailers at a block 1020and positioned for purchase. When the consumer purchases a ticket at ablock 1025 he, or the retailer must first activate at a block 1030 theaccount represented by the account numbers 145 before attempting to usethe hybrid product 100 for a purchase. One method of activating theaccount at a block 1030 is for the consumer to dial a specified tollfree telephone number or visit a specified web site and enter theaccount number 145. At this point the debit card 120 would becomeactivated at a block 1035 and the activation process could, optionally,inform the consumer of the actual value of the card 120. The consumercan then conduct purchases at a block 1040 using the card 120. When apurchase is made, the retailer would validate the card 120 as it wouldfor any normal debit, credit, or gift card at a block 1045 by checkingor confirming with the appropriate issuing bank or other institution1050. After the transaction is completed the retailer can receivepayment from the bank or other payment institution at a block 1055 as heor she would with any other debit or credit card transaction.

Funds can be transferred from the lottery to the bank in any of themethodologies described in the previous embodiments.

Thus, this method is generally similar to the previous methods, with theexception that the consumer activates at the block 1030 the debitportion 120 of card 100 by dialing or logging onto an activation systemat 1035 or by the retailer at the time of purchase in front of theconsumer, for example, scanning a barcode or entering data previouslyprinted under the SOC 108, or by other similar methods well known in theart. This activation process can include simply entering the accountnumber 145 on the card 120 or entering other activation data. Thisembodiment has the advantage of possible added security with theconsumer performing the activation as well as optionally providing amethod for the activation system to inform the consumer if he has infact won a prize. This automated prize information feature can confirmthe prize value 110 printed on the lottery ticket 105 for the consumer,or alternatively eliminates the need for lottery ticket 105 since theconsumer would find out if he won a prize during the process of card 120activation at the blocks 1030 and 1035. In the event that the lotteryticket portion 105 is eliminated, the card 120 can take the form of amore conventional debit, credit, or gift card, that is plastic withmagnetic stripe for example, since the value of the card would only beknown when it was activated as shown in FIG. 10. This guards againstretailer pick-out, for example where a retailer scans all unsold cards120 for prize values and only sells cards 120 with no additional prizevalue to the public, since the consumer would be alerted that the cardwas already activated when he attempted to activate it at the blocks1030 and 1035 after or at the time of purchase at 1025. Also in thisembodiment, due to this activation prize information feature, it mightreduce the motivation to assign lottery inventory control numbers to thecard 120 prior to sale at the block 1025 or for that matter, evenpackage a lottery ticket portion 100 with the card 120. Funding for thisalternative embodiment can be similar to the previous embodiments.

FIG. 33 illustrates, yet another, embodiment the combined ticket/debitcard 100 of FIG. 1 whereby production and distribution can proceed as inprevious embodiments, but the normal lottery logistics of activating andtracking packs of instant tickets can be leveraged to minimize the cashflow and risks associated with the debit card portion 120. FIG. 33depicts in flow chart form this alternative embodiment 1200 with (forclarity) the responsible entity of each step identified by which row theassociated flowchart symbol is placed, that is: a player 1201; alottery, retailer, and associated lottery central site 1202; an instantticket provider 1203; and an issuing bank and processor 1204. In thisembodiment as before, the bank responsible for issuing the debit cardnumbers at 1207 transmits a large block of new or unused potential debitcard account numbers 145 to the lottery ticket printing institution1206. Here, at 1206, the account numbers 145 are shuffled with thelottery ticket data that will ultimately be printed including associatedprize values—if any.

After the desired numbers of tickets 100 are printed at 1208, theinstant ticket provider 1203 ships 1208 the printed tickets debit cards100 to the lottery distribution center 1210. Additionally, the instantticket provider transmits at 1206 the subset of account numbers 145actually printed along with the associated amounts of money to bedeposited with each account number 145 to an issuing bank and processor1212 database. Ideally, for security reasons, once the file containingthe account numbers and associated values is transmitted to the accountnumber database 1212, the instant ticket provider 1203 will securelydelete all records of the account number file on its system. In additionto the account numbers 145, the instant ticket provider 1203 gameprograming department 1206 also transmits sets of cryptographicallyderived values, for example hash values, for each account number 145that can later be coordinated with the account number 145. However, atthis time, there is no correlation between the cryptographically derivedvalues and the account numbers 145, with the cryptographically derivedvalues preferably delivered as a separate file. Finally, a filedocumenting the actual tickets and debit cards shipped is alsotransmitted from the instant ticket provider 1203 game programming 1206to the lottery's central site 1211.

It should be noted, that FIG. 33 illustrates the proxy number database1212 under the control of the issuing bank 1204, but the server couldalso be under the control of the instant ticket provider 1203, or thelottery 1202, or another party entirely. Also, in some circumstances theinstant ticket provider and the lottery central site can be the sameentity. However in all cases, the logical flow of FIG. 33 can remain thesame.

Returning to the process of FIG. 33 as illustrated, as packs of thetickets debit cards 100 are distributed and placed on sale 1210, thelottery retailer typically activates packs of tickets with the lotterycentral site 1211. These pack activation flags are linked with theinventory data embodied in the barcode 165 in the pack of tickets anddebit cards 100. The flags document that the associated tickets debitcards 100 are available for sale in the retailer's establishment. Inthis embodiment, the lottery central site 1211 transmits to the instantticket provider 1203 game programming 1206 listings of the packs oftickets and debit cards 100 that were shipped and activated as well asany packs of tickets and debit cards 100 that were returned or stolen.The instant ticket 1203 game programming department 1206 then reviewsthe ticket debit card inventory data, which links the tickets debitcards 100 inventory control numbers embedded in the barcodes 165 tocryptographically derived values previously generated. Ideally, thecryptographically derived values will be in the form of secure hashvalues that can be traced to a given account number 145 when activatedby the player. The collections of hash values are then concatenated intoa file that is transmitted to the account number database server 1212 tobe referenced during the ticket debit card 100 activation process. Ofcourse, while a cryptographic hash is preferred in this embodiment, aswould be apparent to anyone skilled in the art in view of thisdescription, other cryptographic algorithms (e.g., asymmetricalencryption, symmetrical encryption, etc.) can be employed to the sameoverall functionality and may indeed under different circumstances bepreferable.

The consumer then purchases at 1213 a ticket debit card 100 andactivates and validates the ticket debit card 100 by accessing aspecified web site or telephone bank 1214 and enters clear text datafrom the ticket debit card 100 indicia that were previously hidden undera SOC. This entered indicia are then utilized by the system to create acryptographic hash for comparison to the stored hash for validation.When, in this embodiment, the resulting calculated hash corresponds to alegitimate and activated ticket debit card 100 stored hash, theassociated account number 145 will be activated and the consumer will beable to purchase goods or services with the debit card 1215 and 1216account number 145.

For security reasons, it is preferable that the issuing bank andprocessor 1204 or entity controlling the activation web site ortelephone bank 1214 have no knowledge of the inventory control dataprinted in plain sight on the tickets and debit cards 100—i.e., barcode165 and/or associated human readable indicia. Likewise, it is preferablefor the instant ticket provider 1203 not to maintain a database whichlinks the account numbers 145 to the clear text inventory controlnumbers.

In this embodiment, these security concerns are addressed by generatinga cryptographic hash 1250 of tickets debit cards 100 printed accountnumbers 145′ indicia coupled to instant ticket provider 1203 generatedsalt 150′ (i.e., extra digits) indicia printed on the same ticket anddebit card 100—see FIG. 34A. The resulting hash 1251 can then be safelytagged to the ticket's clear text inventory control number 1252 (also165 in FIGS. 6 and 7) resulting in a database resident at the instantticket provider 1203 that can allow lookup of inventory control numbers1252 to their associated hash value 1251 without the actual accountnumber 145 or prize value being stored in the same database.

Thus, when the instant ticket provider 1203 receives pack activation andother reports 1206 from the lottery central site 1211, it becomes atrivial matter to look up the hash value 1251 associated with the cleartext inventory control number 1252 shown in FIG. 34A (also 165 in FIGS.6 and 7) to generate a report of the hash values 1251 that can be sentto the issuing bank and processor 1204 as cleared in this embodiment ofthe process to validate. The issuing bank and processor 1204 receivesthese reports of the hashed values 1251 and appends it to an overallfile holding the hash values 1251 of account numbers 145 that are forsale at retailers and therefore can be validated on demand. The hashreport thereby adds an additional layer of security at the issuing bankand processor 1204, since there is insufficient information on theissuing bank and processor 1204 server 1212 to generate the hash fromthe listing of account numbers since the salt 150′ is missing.Additionally, the account number database 1212 is never cognizant of theinventory control numbers associated with the account numbers 145′ orphysically where the ticket and debit cards 100 are available for sale.

When a consumer purchases a ticket and enters the account number 145′plus the salt 150′, the debit card web site or telephone bank 1214 willbe able to generate a cryptographic hash 1251 from this consumer-entereddata and then perform a lookup to determine if the consumer-entered hash1251 matches the hash previously stored on the account number database1212 as acceptable to validate. When in this embodiment a validate matchis found, the consumer's pending validation is allowed to continue,otherwise an error message will appear on the account number databaseweb site or telephone bank 1214 stating that the validation cannotproceed and to please contact the lottery.

While specific details of the hash generation can vary, it is preferredthat the Secure Hash Algorithm two (SHA-2) be utilized for the hashingfunction. It should also be noted that the salt 150′ should be ofsufficient complexity to hamper guessing or birthday attacks. A birthdayattack is a type of cryptographic attack that exploits the mathematicsbehind the birthday problem in probability theory—a.k.a. brute forceattack. It gets its name from the surprising result that the probabilitythat two or more people in a group of twenty-three share the samebirthday is greater than 50%.

However, adding sufficient complexity as an effective countermeasure tobirthday attacks has the disadvantage of requiring the consumer to keyin a large amount of information. One embodiment that partiallymitigates the tradeoff between consumer data entry and birthday attacksecurity is to utilize alphanumeric characters for the cryptographicsalt 150′. This embodiment would have the advantage of greater entropyfor each character entered by the consumer. In a preferred embodiment,vowels along with the numbers “0” and “1” and the letter “L” would beomitted as potential salt 150′ characters to avoid confusion with dataentry as well as guard against the possibility of inadvertently spellingobscene or undesirable words. Additionally, for additional ergonomicconsiderations, only upper case letters should be included in thecharacter set for cryptographic salt 150′.

In a preferred embodiment of FIG. 34B, the amount of data in thecryptographic salt 150′ is increased ensuring sufficient entropy (e.g.,256-bits) to combat any realistic birthday attack attempt. In thispreferred embodiment, to overcome potential ergonomic problemsassociated with humans entering large amounts of data, a barcode 150″ isprinted that embodies both the account number and cryptographic salt145″. Thus, in this preferred embodiment, a portable consumer device(e.g., smart phone) with a camera running a barcode decoding applicationsimply scans the barcode 150″, digitally decoding all relevant data, andtransmits the decoded data to the account number database server 1214.Suitable barcode formats would be: Code 128, Code 39, PDF-417 (PortableData Format 417), and preferably QR (Quick Response) codes. The latterQR code is preferred because it is possible to embed the account numberdatabase server 1214 internet address as well as the activation data ina format that can be decoded and executed by generic applications on theconsumer device.

In both the embodiments of FIG. 34A and FIG. 34B, the salt 150′ wouldpreferably include a check character or digit, thereby allowing theaccount number database server 1214 to check for data entry errors onthe part of the consumer or decoding errors on the part of a barcodereader. Typically, this check digit or character would be a modulofunction of the account number 145′ and remainder of the salt 150′. Withthis embodiment, the account number database server 1214 wouldimmediately calculate its own check character or digit from the receivedactivation data and verify that its calculated check character wasequivalent to the transmitted character 1275 (FIG. 35A) prior tocalculating the hash 1250 and continuing with the activation. In theevent that the check characters do not agree, the consumer would beinstructed to reenter the activation data.

FIG. 35A provides an overview of the interfaces for both hash activationand validation with player entry of data. As illustrated in the figure,the lottery's central site 1202 sends a daily or real time report of theclear text inventory control numbers (also 165 in FIGS. 6 and 7) to theinstant ticket provider 1203—i.e., the inventory control numbers (also165 in FIGS. 6 and 7) that will be placed on sale and should be acceptedfor validation on the issuing bank processor 1204 validation web site ortelephone bank 1214. The instant ticket provider 1203 performs a lookupon its game database to find the hash value 1251′ associated with thereceived inventory control number 1252 (also 165 in FIGS. 6 and 7) andtransmits the found hash value to the issuing bank processor 1204. Theissuing bank processor 1204 maintains a database 1212 of the hash values1251′ received from the instant ticket provider 1203 for referencewhenever a player attempts a validation at its web site or telephonebank 1214. As previously noted, since the hash value 1251′ is a functionof the account number 145′ as well as the added salt 150′, an insiderwith access to the issuing bank processor 1204 account numbers 145′would be unable to determine which account numbers 145′ are good forvalidation from the hash values 1251′ contained in the database alone.

When the consumer 1201 purchases a ticket debit card 100, he or she willscratch off the removable coating and enter the account number 145′ aswell as the salt 150′. The last digit of the salt 150′ will notnecessarily be a pseudorandom number, but could be a modulo check digitfor the entire string of data—i.e., account number 145′ plus salt 150′.In this case, the modulo check digit or character will be used to ensurethat the player 1201 has entered the account number 145′ and salt 150′correctly 1275, prior to performing the hash validation check 1277.Assuming the check digit or character calculates correctly with theentered string at step 1275, the hash function 1250 will be executedpreferably on the entire (i.e., check digit or character included)string and if the resulting hash value 1251 is equivalent to a storedhash value 1251′ previously transmitted by the instant ticket provider1203 as acceptable to validate, the ticket and debit card 100 will beallowed to validate with the associated account number 145′ made active.

Advantages of the previous embodiment include limiting the amount offunds transferred to the bank from the lottery to only the number ofticket and debit cards 100 available for sale in the market place, whileat the same time ensuring that the activation database 1212 is unable tocorrelate active account numbers 145 with the inventory control numbers1252 (also 165 in FIGS. 6 and 7) readily available to retailers in thefield. Also notice, that in this embodiment, the retailer is notnecessarily burdened with activating each ticket and debit card at thetime of sale with the player completing the activation process byentering information previously hidden under the SOC of the ticket anddebit card. However, the previous embodiment has the disadvantage ofrequiring multiple entities (i.e., lottery central site 1202, instantticket provider 1203, and issuing processor and bank 1204) to maintaincontinuous real time (or periodic) internet interfaces to relayactivation information. Additionally, the previous embodiment alsorequires the instant ticket provider 1203 to maintain a linking databasewith outside world access—typically instant ticket provider's securityprotocols prohibit these types of interfaces. Finally, the previousembodiment also has the disadvantage of complexity and correspondingdelay of information transfer as well as the increased potential foroutages due to multiple interfaces.

Consequently, FIG. 35B provides a preferred alternative overview of thehash activation and validation with player entry of data interfaces.With this embodiment, as illustrated in the figure, the lottery'scentral site 1202 sends a real time or daily report of the clear textinventory control numbers 1252 (also 165 in FIGS. 6 and 7) that will beplaced on sale and should be accepted for validation directly to theissuing processor and bank 1204 validation web site or telephone bank1214. The issuing processor and bank's 1204 system immediately performsa lookup on its inventory control number and hash database 1230 to findthe specific entry 1251″ associated with each received inventory controlnumber 1252 (also 165 in FIGS. 6 and 7). Additionally, contained in theinventory control number and hash database 1230 with each inventorycontrol number 1252 (also 165 in FIGS. 6 and 7) listing 1251″ is anassociated hash value as well as a flag bit that is set whenever aparticular inventory control number 1252 is placed active and onsale—i.e., transmitted from the lottery central site 1202.

In this preferred embodiment, the instant ticket provider (1203—FIG.35A) generated the inventory control number and hash database 1230 whenthe ticket and debit cards 100 were created. Once created, the database1230 is transmitted to the issuing processor and bank's 1204 systemwhere it is maintained. Thus, the instant ticket provider's (1203—FIG.35A) responsibilities end when the ticket debit cards 100 were created,as is a typical custom for lottery instant ticket products.

Thus, in this preferred embodiment, the issuing processor and bank 1204maintains the inventory control number and hash database 1230 updatingthe associated “Pack Active” flag bit whenever an inventory controlnumber 1252 (also 165 in FIGS. 6 and 7) is received from the lotterycentral site 1202. As before, since the hash value 1251′ is a functionof the account number 145′ as well as the added salt 150′, an insiderwith access to the issuing bank processor 1204 account numbers 145′would be unable to determine which account numbers 145′ are good forvalidation from the hash values 1251′ contained in the database alone.Yet, when the consumer 1201 purchases a ticket and debit card 100 and heor she scratches off the removable coating and then transmits theaccount number 145′ as well as the salt 150′ to the issuing processorand bank's 1204 system the addition of the salt and enclosed check digitnow provide sufficient information to verify and activate the debit card100. With this embodiment, assuming that the check digit or charactercalculates correctly at step 1275 with the entered data string, the hashfunction 1250 will be executed, preferably on the entire (i.e., checkdigit or character included) string and if the resulting hash value 1251is equivalent to a hash value 1251″ in the inventory control number andhash database 1230 with its associated “Pack Active” flag bit set asacceptable to validate, the ticket and debit card 100 will be allowed tovalidate with the associated account number 145′ made active.

This preferred embodiment has all of the advantages of the firstembodiment including limiting the amount of funds transferred to thebank from the lottery to only the number of ticket and debit cards 100available for sale in the market place, while at the same time ensuringthat the activation database 1212 is unable to correlate active accountnumbers 145 with the inventory control numbers 1252 (also 165 in FIGS. 6and 7) readily available to retailers in the field. At the same time thepreferred embodiment has eliminated any real time or periodic interfacesfrom the instant ticket provider (1203—FIG. 35A), thereby simplifyingthe system and increasing reliability as well as security. Also, noticethat information is partitioned from all of the various entities (e.g.,lottery central site 1202, instant ticket provider 1203, and issuingprocessor and bank 1204, player 1201) such that no one entity hascomplete knowledge of: the account numbers 145, which ticket debit cards100 account numbers 145 have been activated, location of sale ofactivated accounts, or values assigned to activated accounts. Thus, thesecurity of the system is maintained by partitioning of information thatcan only be linked after the ticket and debit card 100 has beenpurchased and its SOC removed, revealing the account number 145′ as wellas the added salt 150′.

Of course, as would be apparent to one skilled in the art in view of thepresent disclosure, there are numerous other cryptographic protocolsthat enable linking of the inventory control number 1252 (also 165 inFIGS. 6 and 7) to the account number 145 on a card (e.g., asymmetricalencryption, symmetrical encryption with the cryptographic salt providingthe key, Linear Congruential Generator—“LCG”—with the cryptographic saltproviding the starting seed, etc.) that may under some circumstances bepreferable to the disclosed embodiments. The significant point is thatthe link between the inventory control number 1252 (also 165 in FIGS. 6and 7) and the account number 145 cannot be determined from a databaseunless the cryptographic salt 150 is known.

In the various embodiments described herein, it is required that suchmethod steps as linking account numbers 145 to the ticket and debitcards 100 at step 1206; generating Dash codes at 1206; computing GLEPsfunds at 230′; etc., be performed by an electronic apparatus such as aspecially configured or programmed digital computer. It is required touse such apparatus for a number of reasons including the large volume ofcards that can be produced and sold to make such a process financiallyviable and the desirability of enhanced security that can be provided byencryption and other digital security techniques. For the same reasons,it is required that the steps of transmitting information such astransmitting the account numbers 145 back to the payment institution inthe step 210 (FIGS. 8 and 9) and as shown at the block 1207 (FIG. 33)transmitting the list of account numbers 165 to the bank for activationalso be performed electronically.

FIG. 11 depicts an alternative embodiment of a hybrid lottery instrumentand debit or gift card 1100, which utilizes a standard magnetic stripe1102 without the added security risk of pick-out due to the card'sautonomous manufacturing from the lottery ticket portion since the truevalue of the card 1100 will in this embodiment only be known afterpurchase and subsequent activation. One advantage of using a magnetstripe or equivalent machine readable media to store such information asan account number is that it facilitates the automatic debiting of suchinstruments as debit, credit, or gift cards. In the preferredembodiment, the card 1100 is configured as a debit, credit, or gift cardusing a plastic substrate 1104 in a manner similar to currentlyavailable debit and gift cards. As with typical plastic debit or giftcards, the card 1100 can include the account number 145 and the CID 155printed or embossed on the front (or back) of the card 1100 in humanreadable form along with a set of information and instructions 1107printed on the back 1108 of the card 1100. This printed information 1107can include legally required instructions related to debit, credit, orgift cards as well as information related to the lottery instrumentassociated with the card 1100. The magnetic stripe 1102 can contain thesame general type of information as currently available debit or giftcards such as the account number 145, a name representing thecardholder, a country code, and expiration date, along with variouscontrol and error checking data. In addition, the magnetic stripe can beused to store other data that might be useful in the context of the typeof card 1100 including data representing: a state; the specific type ofcard, for example credit, gift, or debit; type of payment such as anano-payment; and the nature of the associated lottery instrument suchas an instant ticket or a lotto drawing. However, in this particularembodiment, only a standard human signature block 1105 is included onthe card back 1108 without a lottery barcode because the plastic card1100 can be linked to the lottery instrument at time of manufacture.Instead, specific instructions for the consumer to electronically linkany lottery winnings to the debit or gift card after purchase areincluded by the removable instruction label 110 on the top left-handview of FIG. 11. For example, the removable instruction label can beused to direct the consumer to dial a toll-free number or to visit a website to activate and find out if the card was a winner or not. For addedamusement, the consumer can be provided with the option to play a gameat a web site that has a predetermined outcome, which can be used toinform the consumer if he or she has won a prize. In this embodiment noassociated lottery ticket would be required, resulting in a cost savingsand, in certain circumstances, enhanced security.

FIGS. 12 and 13 provide another example of a lottery instrument, in thiscase an instant lottery type ticket 1112, that can be sold packaged asan alternative or an additional embodiment of the hybrid lotteryinstrument, debit or gift card of type 1100 illustrated in FIG. 11. Aswith the previous embodiments of the lottery ticket portion 105, thisembodiment includes the SOC 108 that preferably covers printed instantlottery indicia such as a prize value 110, as well as a set of playindicia 115. When played and the SOC 108 is removed as shown in FIG. 13,that this is a winning lottery ticket is indicated by the matchingindicia in 115. This indicates to the consumer that the winning amount110 can be added to the associated debit or gift card 1100. However, inthis embodiment, the winning funds from the lottery ticket 105 must betransferred by the consumer to the debit or gift card 1100 using a prizecode 1200 printed under the SOC 108 by the method described in theprinted instructions 1110 of FIG. 12. When the consumer transfers thelottery ticket portion funds to the debit or gift card 1100, the card'saccount number 145 will reflect the balance of the prepaid debit or giftcard and the lottery ticket portion. Thus, the card account number 145would only have added value after the instant ticket portion was playedand any winning value was transferred. Thus, the exposed magnetic stripe1102 on the back of the card 1100 in this embodiment would not pose asecurity risk in terms of retailer pick-out or unsold cards, since alldebit or gift cards of type 1100 can be manufactured with the samedefined value.

To add lottery ticket value to the debit card the consumer in thisembodiment would be instructed to enter the prize code 1200 previouslyhidden under the SOC 108. The prize code 1200 can be cryptographicallyprotected, for example, by a secured keyed hash of the ticket inventorynumber and the prize amount, and sufficiently long to thwart guessingattacks by an individual attempting to falsely add value to a debit orgift card of type 1100. Additionally, the activation system can alsolimit the number of times a consumer could attempt to add lottery fundsto a debit or gift card of type 1100, e.g., three times, as well as onlyallow a cryptographically protected prize code to be used once. Thesemethods of protecting the prize code 1100 data are just some examples ofa multiplicity of available and familiar techniques.

FIG. 14 shows, as in previous embodiments, a high-tier winning lotteryticket 1112. However, the ticket 1112 in this embodiment would not allowthe high-tier winning funds 1200 to be transferred to the debit or giftcard 1100. As illustrated in FIG. 14, a high-tier winning ticket inexcess of the legal limit for anonymous funds can be treated as aspecial case conventional instant lottery ticket. In this example,instead of the prize code 1200 in the revealed prize area 110, a set ofinstructions 1202 is printed under the scratch-off coating 108,informing the consumer that a high tier prize has been won and that itmust be redeemed at the lottery. The consumer can then take the instantticket 105 to a lottery office for cash, check, or an identified debitcard as a form of payment.

In any case, this embodiment has the advantage of providing a standardtype plastic debit, credit, or gift card 1100 with a magnetic stripewhile adding an unsynchronized lottery ticket to the debit, credit, orgift card package. Here, the term ‘unsynchronized’ means that thelottery ticket 1112 is not associated with the plastic card 1100 at timeof manufacture or packaging. Rather, the lottery value is added to thecard 1100 by the consumer during the activation process.

FIG. 15 illustrates a method for implementing the embodiment shown inFIGS. 12 and 13. As shown in this example at a block 1115, a bank orother payment institution responsible for issuing the debit or gift cardaccount numbers 145 produces at a block 1125 the plastic debit or giftcards 1100 in the manner commonly used for debit or gift cards. Thelottery printer prints as shown at a block 1120 the lottery ticketportion 105 preferably utilizing secure cryptographic techniques togenerate the prize code data 1200 on the lottery ticket 105. In thisexample at a block 1130, after the print run is concluded and thedesired number of tickets 1112 are printed, the lottery printinginstitution receives the physical debit or gift cards 1100 and packageseach card 1100 with a lottery ticket portion 1112 at 1130. Since thelottery ticket portion 105 prize code 1200 is linked to the card 1100account number 145 by the consumer in this embodiment, there is no needto ensure that any given lottery ticket 1112 be packaged with anassociated card 1100.

However, in this embodiment the method of transferring winning fundsfrom the lottery ticket 1112 to the debit or gift card 1100, asdescribed below in conjunction with a pair of steps 1160 and 1165,allows for the account numbers 145 to be independent of any lotteryinventory numbering system. In this case, the lottery printinginstitution would not be cognizant of the debit or gift card accountnumbers 145 packaged with the lottery ticket 105 since thesynchronization of the lottery funds to the debit or gift card accountnumber 145 occurs only after the consumer has purchased the packagedticket 1112 and card 1100. Since the cards 1100 are not synchronizedwith the lottery ticket 1112 at the time of packaging, the lotteryprinter and lottery can maintain inventory using the lottery ticket 105unique serial number 165 as shown in FIG. 7. Thus, the packages can bedistributed through normal channels as shown by a block 1135 with theassociated added prize code funding provided to the bank or card issuinginstitution at a block 1140 in a manner similar to the methodspreviously discussed. Once the bank or card issuer receives the prizecodes 1200 that were distributed, note that the bank or card issuer isnot cognizant of the lottery inventory information 165 as is generallythe case as in the previous embodiments; the prize codes 1200 andassociated amounts can at this point be loaded onto its activationsystem as shown in a block 1145. For added security, the prize code 1200and amount can be partially recorded on a lottery central system withthe remainder of the prize codes 1200 being calculated real time whenmissing information is provided by the consumer from the ticket, forexample, a key for a secured keyed hash that generates a check coderesident on the central server based on the inventory number of thelottery ticket 105 and the prize amount, or a hash of the prize code canbe kept on the central server with a clear text prize amount, etc.

In this embodiment, the ticket 1112 and card 1100 packages aredistributed to retailers at a block 1150 and positioned for purchase.When at a block 1155 the consumer purchases a ticket card 105 and 1100,he can play the lottery ticket 1112 and then transfer the winning fundsto the card 1100 having the account number 145 as shown at a pair ofblocks 1160 and 1165 before attempting to use the hybrid product for apurchase. The transfer 1160 of any winning funds can also optionallyinclude a card 1100 activation process that would notify the system thatthe debit or gift card has been purchased and will be used shortly. Onepossible method of transferring funds and activating the account 145 atthe step 1160 is to instruct the consumer dial a specified toll freetelephone number or visit a specified web site and enter the accountnumber 145 and winning code 1200 as illustrated in the instructions 1110on FIG. 12. At this point the card 1100 would be activated with thecorrect funds at the step 1165 and the activation process can,optionally, inform the consumer of the total value of the card 1100. Theconsumer can then conduct purchases as shown at a block 1170 using thecard 1100. When a purchase is made, the retailer can validate the card1100 as shown at a pair of blocks 1175 and 1180 as he or she would forany conventional debit or gift card by checking with the appropriateissuing bank or other payment institution. After the transaction iscompleted, the retailer in this embodiment will receive payment from thebank or other payment institution as shown at a block 1185 as would bethe case with other conventional debit or gift card transactions.

Thus, the embodiment of FIG. 15 can generally be the same as theprevious embodiments, with the exception that the consumer or retailertransfers the lottery ticket 105 portion of the funds to the card 1100by various methods including dialing or logging onto an activationsystem depicted at the blocks 1160 and 1165. This transfer process caninclude simply entering the account number 145 on the card 1100 orentering other activation data. This embodiment has the advantage ofpossible added security with the consumer, or retailer at time of saleperforming the transfer, as well as optionally allowing the system toinform the consumer if he or she has in fact won a prize. This automatedprize information feature can confirm the prize value printed on thelottery ticket portion 1112 for the consumer. Since the consumersynchronizes the lottery ticket portion 105 to the card 1100 the systemguards against retailer pick-out, that is, where the retailer scans allunsold cards 1100 for prize values and only sells cards 1100 with noadditional prize value to the public, because the consumer performs thesynchronization using the scratch-off lottery ticket 1112 secured withstandard scratch-off lottery well known security techniques. Also,because of this transfer prize information feature, it is not necessaryto assign lottery inventory control numbers such as can be contained inthe barcodes 165 to the card 1100 prior to sale.

FIG. 16 provides an example of how a ticket of the type 100 can be usedfor age and location identified transactions. In this case, a lottery'sdiverse distribution of retailer outlets, private network, and supportinfrastructure is particularly useful for the sale of the combinedinstant lottery ticket and debit card 100. Here, sales of the instantlottery ticket and debit cards of the type 100, for example, with proofof age and location can be readily accommodated with a lottery salesinfrastructure. The typical lottery retail outlet is normally veryfamiliar with requiring proof of age identification for purchases ofalcohol, tobacco, and lottery tickets. Therefore, the combined instantlottery ticket and debit card 100 that requires age verification forpurchase can be arranged such that it would require little or noappreciable additional overhead to the retailer. As a result, byutilizing the instant lottery ticket and debit card 100 thatadditionally carries an inherent proof of age, and possibly location,for internet transactions, the system can enable internet gaming withina state's border for example. Also, this mechanism can be used to meetproof of age or location requirements for other on-line purchases suchas, alcohol, or tobacco. Web site visitors can have their age andlocation digitally verified while maintaining their anonymity.

Since lottery products in most locations can legally be sold only toindividuals eighteen years or older, a lottery retailer is generallyrequired to age restrict sale of these products. As a result, therewould be no added costs involved for the retailer to certify that onlysomeone eighteen years or older has purchased the combined instantlottery ticket and debit card 100. FIG. 16 is used to illustrate oneapproach for identifying the debit card 120 portion of the ticket anddebit card 100 as being age certified such that automatic agecertification can be implemented over an existing credit or debit orgift card infrastructure. In this embodiment, a Bank IdentificationNumber (BIN) 184 is used. Typically, the credit or debit cardinfrastructure embeds the BINs 184 in all credit or debit card accountnumbers such as 145. Here, the BINs 184 can be used as a flag for bothage and location authentication. As illustrated in FIG. 16, a firstdigit 175 of the account number 145 printed on the debit card 120 can beused as a type identifier for a payment institution, that is for examplea “4” for a first bank or card issuer, a “3” for a second bank or cardissuer, etc. The next five digits of the account number 145 printed onthe debit card 120 comprise the BIN 184. It should be understood thatthe term “the” BIN is slightly inaccurate, because an issuing bank canhave multiple BINs that can be used for specific purposes, usually toidentify a specific type of card issued by the bank. In this case, if aspecific BIN 184 is assigned to the combined instant lottery ticket anddebit card 100, for the purpose of this description called a ‘lotteryBIN’, the combined instant lottery ticket and debit card 100 can beautomatically age authenticated when the consumer purchases the card100. It should be understood that the lottery BIN 184 is simply onesubset of numbers in a debit card account that can be used foridentification purposes. Many other number(s) relating to a debit cardaccount can be reserved for the described authentication andidentification purposes.

In transactions utilizing the debit card 120 of the type shown in FIG.16, a merchant can program its system or web site to check for thelottery BIN 184 or other special code embedded in a debit cardtransaction. If the debit card account number 145 includes the lotteryBIN 184, no further age identification is needed and the sale of liquor,cigars, etc. can, in this embodiment, proceed without further age orother forms of authentication. Additionally, since the account number145 is generally approved as valid with sufficient funds at the issuingbank's computer system in this embodiment, it will be difficult forunderage consumers; for example, to make age limited purchases by simplychanging the BIN 184. Furthermore, the limited amount pre-deposited inthe debit card 120, makes it likely that the card 120 will have alimited life in the market place and thereby further reduce theprobability that an underage minor would illegally use the debit card120.

FIG. 17 provides an illustration of how the process outlined above canbe applied to location authentication. For instance, if a unique BIN 184is assigned to a state lottery, it is an indication that the instantlottery ticket debit card 100 was purchased within that lottery'sjurisdiction and the debit card portion 120 can then be used to engageactivities such as internet gaming that are jurisdictionally limited.

As shown in FIG. 17, this embodiment of a BIN age or locationauthentication process can be implemented as a variation on the ticketproduction or sales process of FIG. 9. In this embodiment, the bankresponsible for issuing the debit card numbers would transmit at 200 alarge block of new or unused potential debit card account numbers 145 tothe institution responsible for printing lottery tickets as before. Inthis embodiment, however, the BIN 184 embedded in the block of accountnumbers 145 would be reserved for age and location identification. Thelottery ticket printing institution would then merge at 205 the block ofdebit card account numbers 145 with the instant ticket inventory controlnumbers 165 and at 210 return a subset of account numbers 145 used afterthe print run is completed

As in the process of FIG. 9, the lottery printing institution physicallyships at 215 the printed tickets and debit cards 100 to the lottery'swarehouse for distribution to the retailer base. When the tickets 100are shipped to the retailers, the lottery also transmits the listing ofall shipped and activated instant ticket inventory control numbers 165to the lottery ticket printing institution. The lottery ticket printinginstitution at 220 then links the inventory control numbers 165 to theprinted set of debit account numbers 145 using a secure algorithm. Theresulting list of account numbers 145 is then transmitted at 225 to theissuing bank for activation. Upon receipt of the account numbers 145 tobe activated, the bank invoices at 230 the lottery for funds to bedeposited into the debit card accounts.

Next at 240, the retailers place the received tickets 100 on sale andconsumers purchase the hybrid instant ticket and debit card 100 after,as shown at a block 245′, the consumer has proved that he is of legalage for the jurisdiction, for example, eighteen or older. The consumerscratches off the SOC 108 and discovers the amount 160 deposited on thedebit card as well as the account number 145 and other identifyinginformation. At 250 the consumer then can use this information to makeon-line purchases. As shown at a block 255′, the store or on-line sitewhere the purchase is made, if an age restricted good is being sold,automatically scans the account number 145 of the debit card todetermine if there is an age-authentication ‘lottery BIN’ 184 present.If not, the store automatically refuses the sale or can request anothermeans of age-authentication. However, if the age-authentication ‘lotteryBIN’ 184 is present, the store transmits the debit card account number145 and other information to the issuing bank that confirms the accounthas sufficient funds for the purchase 260. The store ships the goods tothe consumer at 255 and receives payment from the issuing bank at 265. Asimilar process would also be employed for location authentication.

FIG. 18 illustrates one embodiment of a system that can facilitate microand nano transactions. Micro or nano payment systems are usually definedas methods for transferring very small amounts of money, in situationswhere collecting such small amounts of money with the usual paymentsystems is impractical, or very expensive, in terms of the amount ofmoney being transferred. These payments are typically too small to beaffordably processed by credit card or other electronic transactionprocessing mechanisms. However, this problem can be overcome utilizingan arrangement such as the instant ticket and debit card model describedabove. In this embodiment the instant ticket and debit card 100 can beadapted to permit credit or debit card transaction fees to be paid outof the prize fund of a lottery. As a result, each debit transaction canbe substantially reduced and in some cases result in no transactioncosts to the selling store. In many cases, this approach can provide abasis for the economic use of micro and nano payments. Here, utilizingthe instant ticket and debit card model as exemplified in FIG. 18,recovering transaction processing fees from the prize fund can permitmultiple deductions from debit accounts to be made without alsodeducting transaction fees at the time of the transaction. Further, theability to deduct transaction fees from a prize fund and thereby prepayall transaction costs can result in a debit or credit system where thetransaction's cost is not apparent to the consumer. Moreover, such asystem can be implemented that is backwardly compatible to existinginternet sites which accept debit and credit cards.

In this embodiment, the ‘lottery BIN’ 184 embedded in a credit or debitcard account number 145 can also be used to identify the account as a nofee transaction to the seller. As with age or location authentication,the ‘lottery BIN’ 184 can be used to easily identify to a seller that aparticular transaction will not incur transaction fees to the seller andcan therefore be eligible for a micro or nano payment.

As depicted in FIG. 18, utilizing a unique BIN authentication for microand nano payments can be implemented using the basic process illustratedin FIG. 8. In the process of FIG. 18, the bank responsible for issuingthe debit card numbers at the step 200 would transmit a large block ofnew, unused, potential debit card account numbers 145 to the institutionresponsible for printing lottery tickets. In this application, the BIN184 embedded in the block of account numbers 145 is reserved for prepaidtransaction fee identification. The lottery ticket printing institutionwould then merge at the step 205 the block of debit card account numbers145 with the instant ticket inventory control numbers 165 and at thestep 210 return the subset of account numbers 145 used after the printrun is completed.

Then in this embodiment as shown at 215, the lottery printinginstitution will physically ship the printed tickets 100 to thelottery's warehouse for distribution to the retailer base. When thetickets 100 are shipped to the retailers, the lottery also transmits thelisting of all shipped and activated instant ticket inventory controlnumbers 165 to the lottery ticket printing institution. At this point220, the lottery ticket printing institution links the inventory controlnumbers 165 to the printed set of debit account numbers 145 using thesecure algorithm. Subsequently at a step 225, the resulting list ofaccount numbers 145 is transmitted to the issuing bank for activation.

As indicated by a block 230′, upon receipt of the account numbers 145 tobe activated, the bank invoices the lottery for the necessary funds tobe deposited into the debit card accounts. However as shown in a block235′, in the micro or nano transactions of the embodiment of FIG. 18,the funds to be transferred will preferably include prepaid transactionfees as well as the total amount to be deposited on each card.

In this embodiment as shown at 240, the retailers place the receivedtickets 100 on sale and at the step 245 consumers purchase the hybridinstant ticket and debit card 100. Again, the consumer scratches off theSOC 108 and reads the amount 160 deposited on the debit card 120 as wellas the account number 145 and any other identifying information. Then at250, the consumer can use this information 160 and 145 to make apurchase including on-line purchases.

Here in this embodiment, as shown at a block 255″, the store or web sitefor example, where the purchase is made can automatically scan theaccount number 145 of the debit card 120 to determine if there is anano-authentication lottery BIN 184 present. If not, the store canautomatically inform the consumer that he needs a lottery debit card toconduct the desired transaction. However, if the nano-authenticationlottery BIN 184 is present, the store as indicated at 255″ transmits thedebit card account number 145 and other information to the issuing bankthat confirms the account has sufficient funds for the purchase as shownat 260. If the funds are sufficient, the store ships the goods orprovides the purchased services to the consumer as shown at 255″ and at265 receives payment from the issuing bank.

It should be noted that the description of the micro and nano paymentsystem depicted in FIG. 18 that utilizes the combined lottery ticket anddebit card 100 only represents the preferred embodiment of such asystem. Other objects of value can be used in place of the lotteryticket portion 105 and other forms of transaction objects can be used inplace of the debit or credit card portion 120 in such a combinedproduct.

FIG. 19 depicts an example of how a system of the type shown in FIG. 18can be used as a spam filter. The described spam filter, which involvespayments in order to transmit electronic mail to specific addresses, canreside at the electronic mail server level and effectively betransparent to the user. As shown at an initial block 300, when anelectronic mail is transmitted from X to Y, a receiving server can beused to hold the pending mail and at a block 305 send a request for anano payment to the transmitting server. It should be noted that themethod described is intended to illustrate the basic concept of spamfiltering via a nano payment request. Numerous other embodiments of thisconcept can be implemented and, in certain circumstances might be moredesirable. For example, the recipient's electronic mail server can beprogrammed to first evaluate a pending mail to determine if a known‘friend’ sent the mail; if so; the mail server can then be programmed toautomatically forward the mail without requiring a payment.

In the embodiment of the process as depicted in FIG. 19, the receivingserver, as shown in a decision block 310, will then wait a predeterminedtime period for a payment indication to be received. The paymentindication can be a bit stream or code that normally represents a moneytransfer. If the payment indication is received before the predeterminedtime period expires, the server, as shown at a block 320, will nextvalidate or authenticate that the payment represents a valid transfer offunds. For example, the validation process can determine if anano-authentication ‘lottery BIN’ 180 is present. In this example, thenano payment deposit can be to another nano-authentication ‘lottery BIN’debit card account.

If the payment is authenticated, the server, as shown at a block 335,will forward the electronic mail to Y′s computer. If a payment isreceived but not valid, for instance if there is no nano-authentication‘lottery BIN’ 184 present, a message indicating a denial of payment byelectronic mail will be sent to X, as shown in a block 325. And, thepending electronic mail, in this embodiment, can be temporally stored,as shown in a block 330, in a special holding area for possibleevaluation by Y. The electronic mails stored in the holding area can beheld for a predetermined time period and then automatically deleted. Inthis case, Y can be given the opportunity to review the electronic mailsstored in the holding area prior to deletion.

FIG. 20 illustrates one method that can be used to permit balancetransfers in connection with the methods described above. For example,after one or more purchases, the hybrid instant ticket and debit cardfunds on account will likely be depleted leaving small residual balanceof money remaining in the account. One approach for dealing with smallresidual amounts left in one account is to couple the first account withanother debit, credit, or gift account. For example, two account numbers145 can be permitted for one purchase, in order to clear the residualamount out of the first account. However, a preferred method, asdepicted in FIG. 20, involves a system that permits the balance on afirst account, such as an instant ticket debit card account to be rolledover to second account. In the context of the combined instant lotteryticket debit card systems of FIG. 20, this type of balance transfer canbe used to encourage the consumer to purchase a new lottery instrumentand defined value product such as the instant ticket and debit card 100when the first funds associated with the debit portion 120 of the card100 are too small to be readily usable by the consumer.

As shown in FIG. 20, when, for example, the consumer decides the firstor extant account associated with the debit card 120 has too low of abalance to make a significant purchase, as indicated at a block 400, hecan elect to roll the balance over from the extant card 120 to a newdebit card 120 by, first purchasing a new lottery ticket and debit card100, as shown at a block 405. Then, in this embodiment, the consumer cancontact a central database either via a web site, shown at a block 410,or by calling a toll free customer service line shown at a block 415.Here, as indicated by a block 420, the consumer then authenticates thathe is the owner of the extant debit card 120 by providing its accountnumber 145 and the associated card security code 150 or alternatively,the optional pseudorandomly generated name 155. After the authenticationprocess is completed, the consumer is provided with the balanceavailable on the extant debit card as indicated at a block 425. Theconsumer can then, as shown by a block 430, initiate a balance transferfrom the extant debit card 120 to the new debit card 120 while providingthe new debit card's account number 145 and CID 150 in the process. Asshown by a pair of blocks 435 and 440, this embodiment concludes, withthe consumer receiving a confirmation at a block 435 and the extantdebit card account number 145 is deleted at a block 440 from the centralsite database at 440.

FIG. 21 illustrates one embodiment of a method for distributing cashflows from the types of transactions exemplified in FIGS. 18 and 20.Multiple institutions working together in the above described examplesrelating to the hybrid instant ticket debit card 100 can result in anumber of funding and cash flow methods. For example, the residual fundsleft in extant debit cards 120 that are not transferred to a new accountcan eventually be swept clean via an account maintenance fee. As anexample, a 10¢ maintenance fee can be charged for each month the accountremains open after a predetermined time such as four months. Thesemaintenance or sweep fees can be channeled as extra profits to thelottery or can be used to help pay the issuing bank's fees.

A cash flow method of the type shown in FIG. 21 can facilitate theinstant ticket and debit card process of FIG. 18, which in turn can beuseful in enabling micro and nano payments over the internet. Here, atleast a portion of the lottery revenue, as shown at a block 500, can beused to: fund distributed debit card accounts, indicated at a block 505;fund the standard lottery prize fund, the fund that usually exists topay out lottery prizes, indicated at a block 510; and fund the lotteryitself as well as its contractors, indicated at a block 515.

In this embodiment, the funds that are to be deposited into debit cardaccounts in a block 510 are, preferably, deposited, as shown at 510,only after the hybrid instant ticket and debit cards 100 are actuallyplaced in the retailer location. This can serve to minimize the moneyrequired to fund the accounts and in some cases act as a pay as you gotype system. It should be noted that many existing lotteryinfrastructures readily support this type of pay as you go type systemwith small numbers of tickets organized in packs being distributed toretailers at any one time. When purchases are made with the funded debitcards, as shown at a block 515, the purchase transactions can be set upso as to result in no transaction fees in accordance with the micro ornano payment model of FIG. 18. Then, as shown at a block 520, thetransaction information can be transmitted to the transaction processorso that the selling entity can receive payment.

Specifically with respect to an embodiment that uses themicro-nano-payment model of FIG. 18, the funds that are allocated forthe lottery prize fund shown at 510 can be partially used to fund theprearranged transaction fees, as shown by a block 525, therebycompensating the transaction processor. The prepayment of transactionfunds at 525 can benefit the transaction processor in that it couldreceive advance payment of transfer fees at a predetermined rate. Then,as indicated at a block 530, the transaction processor can use thetransaction funds received at 525 to pay a merchant acquiring bank,indicated by a block 535; and a card issuing bank, indicated by a block540; as well as other card issuing institutions, indicated by a block545. It should be noted that the transaction processor can also arrangeto prepay these entities, 535, 540, and 545, or pay one or all with anormal real-time transaction fee model. If the payments were madereal-time, a statistical model can be employed by the transactionprocessor at 530 to average out the transaction fees, for example, overa large number of the tickets 100 of the type that are typically sold inlarge numbers by lotteries.

Also in this embodiment, any remaining funds, which might include thesweep funds discussed above, can be included in the lottery proceeds 515and used, as shown by a block 550, for a variety of purposes includingpaying its subcontractors and its sponsoring entity as well as coveringits own internal costs.

FIG. 22 depicts yet another embodiment 600 of a combination of a lotteryticket with a debit or credit card where a debit or credit portion ofthe combination ticket 600 can provide a method for payment of a lotteryprize. In this example, a lottery ticket portion 605 of the ticket 600is of an on-line type, which is printed real-time after a bet is made ona future drawing, and a debit card portion 610 is simply printed at thebottom of the same combination on-line lottery ticket 600. In thisembodiment, the debit card portion 610, indicated by a printed indicatorat 612 of the combination ticket 600 is also printed with an accountnumber 615, an optional pseudorandom name 620, an expiration date 630,and a Card ID (CID) 625 which is not covered. The debit card portion 610of the combination on-line lottery receipt and ticket 600 wouldpreferably not be active or contain any money in the associated accountat the time the bet was made and the combination ticket 600 was printed.In this embodiment, after a drawing associated with the combinationon-line lottery receipt and ticket 600 occurred, winning receipt andtickets would automatically have their associated debit card accountsactivated with the winning amount(s) deposited in an account representedby the account number 615. This embodiment has the advantage ofeliminating the need for the consumer to return to the retailestablishment to collect low and mid-tier winnings, thereby alsorelieving the retailer of the requirement to have enough cash on hand topay out prizes as well as eliminate potential fraud where a retailerinforms a consumer that his or her ticket is not a winner, when in factit is, and keeps the ticket. It is also possible to modify thecombination ticket 600 such that the debit card portion 610 has adefined value to which the winnings, if any, of the lottery portion 605can be added in the manner of the above described embodiments. Inaddition, as indicated by a set of instructions at 635, high tier prizescan be provided for by instructing the consumer to redeem thecombination ticket 600 at a lottery retailer.

An alternative to the combination on-line embodiment 600 illustrated inFIG. 22, is for the debit or credit card portion 610 of the combinationon-line lottery receipt and ticket 600 to only contain partialinformation required to complete a debit card transaction. In thisalternative embodiment, an information element required for redemption,for example the CID 625, is not printed on the combination ticket 600when the wager is made. Thus, the consumer might be forced, for exampleto return to the retailer establishment to obtain a second receipt withthe withheld data printed on it. This alternative embodiment has theadvantage of still relieving the retailer of the obligation of therequirement to have enough cash on hand to pay out prizes, whilemaintaining customer traffic through his or her establishment.

In yet another alternative to the combination on-line embodiment 600illustrated in FIG. 22, the debit card portion 610 can also be printedwith a minimum value such as the $20 minimum card value 182 as depictedin FIG. 1. Thus, this embodiment can be used with the two, previouslydescribed, combination on-line embodiments 600 with the exception thatthe debit card portion 610 is endowed with a minimum value. Preferably,the consumer would also pay the minimum value 182 as well as the costsof the lottery portion 610 at the time of purchase.

FIGS. 23 and 24 depict another embodiment 105′ of the instant lotteryticket 105 described above where residual values can facilitate micro ornano payments. In a first view shown in FIG. 23, the printed lotteryticket 105′ includes a set of micro or nano payment information 125′such as a micro or nano payment account number or pay code 145′ and a(Personal Identification Number) PIN number 117 along with a set of playindicia 115′ indicating that this particular ticket 105′ is not awinner, preferably, all of which is concealed under the removable SOC108 shown in FIG. 24. Included with a set of payment information 125′ isan amount 126′, in this case 5 cents, to be deposited in an accountrepresented by the number 145′. In this embodiment where only the losingtickets 105′ have the payment information 125′, the amount 126′ can beconsidered as a residual value of the ticket 105′. In this embodiment,the indicia 115′ as well as micro or nano account number 145′, the PIN117, and the amount deposited in the account 126′, are obscured by theSOC 108 until the consumer of the product removes it. After removal ofthe SOC 108, the consumer will have all of the information necessary touse the losing ticket 105′ for one or more predetermined micro or nanotransactions. In this embodiment, the lottery game ticket 105′ can bedesigned, produced, purchased, and played according to current acceptedlottery or related business practices. For example, the ticket 105′ canbe distributed within the existing distribution networks for instantlottery games.

For simplicity, the instant lottery ticket 105′ is described as thepreferred embodiment for the lottery vehicle, however it will beappreciated that other lottery-type tickets such as on-line ticketsprinted in real time like the combination ticket 600 of FIG. 22 can beused and might be more desirable in some applications.

FIG. 25 illustrates an embodiment where the lottery ticket 105′ is awinner as indicated by a set of play indicia 120′ but also includes themicro or nano payment information 105. In the preferred embodiment,however, winning lottery tickets, identified by winning indicia 115′,would preferably not include any micro or nano account information 125′.The primary disadvantage of including micro or nano payments onconventional instant lottery winning tickets results from the fact thatwhen a consumer surrenders a winning lottery ticket for payment, thelottery ticket 105′ effectively becomes a bearer document. This forcedsurrender of the ticket for payment can create certain logisticalchallenges. For example, if the consumer did not cash the micro or nanopayment before surrendering the ticket 105′, the nano or micro value ofthe ticket 105′ can be inadvertently passed on to the cashing retailer.This inadvertent transferring of small value could create ill feelingsand other problems with consumers. However, there can be circumstanceswhere it might be desirable to include the residual value 126′ withmicro or nano account information 145′ on winning tickets. For example,if it is determined that printing an uncovered notice on the lotteryticket 105′ to the effect that the ticket 105′ has a residual value, offor example 5 cents, printing this notice on only losing tickets wouldmake it easy to pick out winners from losers before the ticket isplayed. In this case it might be desirable to have the entire lotterytickets 105′ in a game, winners and losers, include the nano or micropayment information 125′.

One potential advantage of adding a residual value to non-winninglottery tickets 105′ of FIGS. 23 and 24, is that it can increase theperceived value of the instant game and lead to increased sales. Inaddition, there is some potential for the residual value leading tofewer of the tickets 105′ thrown out carelessly as litter, just asrecycling has led to fewer cans and bottles discarded as trash.

In one embodiment, the residual value of the lottery tickets 105′ in agame can be set equal to 1% of the price of the ticket 105′. Thus, a onedollar instant ticket 105′ would have a residual value of one cent and atwenty-dollar instant ticket 105′ would have a residual value of twentycents. The purchaser of the ticket 105′ can then redeem the residualvalue online through the activation of the account via the accountnumber 145′ and the PIN 117. Once the account is activated, the personcan then transfer the value to another account. Here, the cost of theresidual value of the tickets 105′ to the lottery would be a function ofthe redeemed percentage of the tickets 105′. Thus, the lottery can fundthe redeemed residual value of the tickets 105′ using the prize fundsassociated with the instant game. Here, the projected cost to thelottery of the residual value of one of the tickets 105′ would be equalto the ticket's residual value multiplied by the redemption percentage.In the example of a one-dollar ticket having a one-cent residual valuewhen redeemed where the actual redemption rate percentage is tenpercent, the projected cost to the lottery of the residual value wouldbe one tenth of one cent. Therefore, in some circumstances, funding ofthe residual value of the tickets 105′ by the lottery can be providedout of the prize funds for that game.

One advantage of this approach is the ability to deduct transaction feesfrom a prize fund and thereby prepay all transaction costs in a mannernot apparent to the consumer. As described above, where the lottery BIN184 is embedded in a credit or debit card account number 145′ it canalso be used to identify the account as a no fee transaction to theseller. Another embodiment for losing instant or on-line lottery tickets105′ as a source of funding for micro or nano payments is for the losingticket 105′ to include the account numbers 145′ that specify micro ornano purchases directly at specific web sites, that is, a closed looppayment system. This embodiment has the added advantage that it cansignificantly reduce or eliminate infrastructure charges such as creditor debit card fees, thereby allowing in some cases for 100% of the fundsto be applied directly to micro or nano purchases. Moreover, the cost offinancing losing instant lottery tickets 105′ for micro or nano paymentsas discussed above can be significantly less than the face value 126.Also, the nature of micro and nano transactions on the internet utilizestechnology that has virtually no cost per transaction. One advantage isthat this allows for the losing lottery ticket micro or nano funds to bediscounted, for example, a transaction that is listed on the internet ascosting 10¢ may in reality only require an 8¢ or 9¢ payment to themerchant.

Once the customer redeems the residual value of the ticket 105′ byactivating the online account number 145′, the residual value(s) canthen be spent with participating vendors who accept funds from theonline payment accounts. In this embodiment, amounts representing theresidual values can be transferred to the bank or other financialinstitution supporting the online accounts by the lottery or ticketprinter. The vendor accepting these payments can in this example receivea share of the payment value.

Another advantage of the losing lottery ticket micro or nano paymentsystem described above is that it can allow the balance from one losingticket account to be rolled over to another losing ticket account in themanner discussed in connection with FIGS. 20 and 21. This type ofbalance transfer can be used to encourage the consumer to accumulatelosing tickets, much like the old green stamp paradigm of the 1960s. Theflowchart provided in FIG. 26 outlines one method of producing losinglottery tickets with embedded micro or nano payments. Beginning at ablock 800, the bank or other institution responsible for issuing themicro or nano account numbers 145′ would create and transmit a largeblock of new or unused potential account numbers 145′ to the institutionresponsible for printing lottery tickets. Next, as represented at ablock 805, the lottery ticket printing institution would merge the blockof account numbers 145′ with a set of instant ticket inventory controlnumbers thereby linking the instant ticket prize values with anassociated account number 145′. However, unlike the previously describedembodiments, in this embodiment the account numbers 145′ would primarilybe attached to losing lottery tickets 145′.

As with previous embodiments of the cards 100, it might be desirablethat the block contain a larger number of account numbers 145′ than thetotal number of tickets 105′ printed to allow for waste in the printingprocess. After the print run is concluded at 810 and the desired numberof tickets 105′ are printed, the lottery printing institution, as shownat a block 805, transmits the subset of account numbers 145′ actuallyprinted to the issuing bank or other institution. Upon receipt orsometime thereafter, the issuing bank or other institution can activatethe account numbers 145′ in its database as shown in a block 820.

Next in this example, the tickets 105′ are shipped to the retailers asshown at a block 815 with the retailer placing the tickets or a portionthereof on sale 825. As depicted at a block 835 the tickets 105′ arepurchased by consumers as shown at a block 835 and whereupon theconsumer can use the micro or nano accounts numbers 145′ to makepurchases on the internet as depicted on a block 840. When thetransaction occurs, the receiving web site will in this embodimentverify the micro or nano account represented by the account number 145′by electronically contacting the cognizant bank or institution at ablock 845. Assuming the account is valid, the cognizant bank orinstitution validates the transaction at a block 830, then the web siteships the goods to the consumer as indicated at a block 845. Eachvalidated transaction can then be logged on the cognizant bank orpayment institution's database at a block 850 and when a sufficientnumber of transactions have occurred, the cognizant bank or paymentinstitution can bill the lottery or designated party for the actualmicro or nano payments used in the transactions.

FIGS. 27, 28, 29, and 30 illustrate examples of another embodiment ofthe type of hybrid product 100 described above that, in this case,relates to a closed payment system. This is in contrast to an openpayment system such as the above described credit or debit card approachthat permits the bearer of the defined value portion 120 to makepurchases from a wide variety of vendors and institutions. In a closedpayment system as used herein the prize component or defined valueportion can be configured such that redemption is limited to apredetermined or specified institution or vendor. Preferably, the prizecomponent will be limited to a single institution or vendor but in somecircumstances it might be desirable to add a limited number of othervendors to the prize component.

As shown in FIG. 27, one example of a closed payment hybrid product is aprinted card 900 that includes a lottery ticket portion 905 as well as aclosed payment portion 910. Here, the prize component 910 is a prepaidcard that can be used with a specified vendor identified at 902 on thecard 900, such as a telephone company to make telephone calls. A SOC 915of the type that normally covers printed instant lottery indicia, coversplay indicia, such as a set of play indicia 916 of the type shown inFIG. 28. Also, a SOC 920 in this embodiment covers certain informationprinted on the closed payment card portion 910 of the type shown in FIG.28 including: a card account code 921 and a credit amount 922. In thisembodiment, the SOC 920 preferably obscures the information 921 and 922until the purchaser of the product removes it. Thus, the closed paymentcard 910 can be attached to or integrated with the instant lottery gameticket 905 and further it can be designed, produced, purchased, andplayed according to current accepted instant lottery business practices.As with the card 100, the hybrid instant ticket and closed payment card900 can be distributed within existing distribution networks for instantlottery games as well as establishments typically honoring the closepayment gift cards such as, coffee shops, retail stores, etc. Inaddition, the closed payment card 910 can contain other information suchas a barcoded account number 923 as shown in FIG. 29. In any case, theclosed payment redemption information can be configured to supply theconsumer with all of the information necessary to use the card 910 for aclosed payment card transaction with the vendor identified at 902. Also,as with the card 100, a perforation 925 can be added to the card 900 toaid the consumer in separating the closed payment card portion 910 fromthe scratch-off lottery ticket portion 905 after the instant ticket hasbeen played. Alternatively, the closed payment card can be manufacturedout of plastic and attached to the lottery portion via glue for example.

In these embodiments, the price of the instant ticket and closed paymentcard 900 as shown printed at 930 on the upper left hand corner of thelottery ticket portion 905 includes the price of the lottery instantgame on portion 905 and at least a minimum value printed at 935 of theclosed payment portion 910.

As an example, the $20 closed payment card 910 bundled with a $5 instantgame ticket 905 can be sold for a total of $25 as shown at 930. If thelottery ticket 905 is a winner as shown in FIG. 29 by the play indicia916, the closed payment card account balance is the prize value shown at922, here $520, rather than the $20 minimum. Alternatively, the amountwon on the instant ticket 905 can be added to the guaranteed minimum 935of the closed payment card 910, $70 in the example illustrated in FIG.28.

FIG. 30 illustrates an example where the instant lottery ticket 905 isnot a winner. In this embodiment, the closed payment card 910 still hasthe minimum value of $20 printed at 935 and depicted at 922 under theSOC 915. One advantage of the cards 900 shown in FIGS. 27-30 and inparticular the non-winning lottery ticket 905 in FIG. 30 is that theeconomics of a lottery game can permit the transaction fees associatedwith redeeming the closed payment card 910 to be covered by thenon-prize component of the lottery game revenue. More generally, theeconomics of the lottery game, including the prize structure and thenon-prize component of the lottery game revenue, are preferably arrangedsuch that the typical costs of the lottery game as well as thetransaction and administrative costs of the closed payment cards 910 arecovered. Alternatively, the economics of a closed loop payment systemcan permit the costs of the lottery game to be covered in the base costof the card 900, that is for example, a $20 closed loop gift card cancover the costs of adding a $1 lottery ticket portion at no extra costs.

In a preferred mode of operation, at the time the instant ticket andclosed payment card 900 is purchased by a consumer, the closed paymentcard account number 921 is activated in a central database of thespecified vendor 902 or associated payment institution and the fundsbecome available for use by the closed payment cardholder to makepurchases from the vendor 902.

FIG. 31 illustrates a first method of producing and selling hybridinstant ticket and closed payment card of the type 900. In this case itis the hybrid instant ticket and closed payment card 900 that can bedistributed within an existing distribution network already in place forinstant lottery games. This example also illustrates one embodiment of amechanism for organizing the closed payment account numbers 921 andsynchronizing deposits with the designated vendor 902 or paymentinstitution.

Beginning at a block 940, the institution, such as the vendor 922responsible for issuing the closed payment card account numbers 921,creates and transmits a large block of the account numbers 921 to theinstitution responsible for printing the cards 900. Next, as representedat a block 941, the card printing institution merges the block ofaccount numbers 921 with a set instant ticket inventory control numbersthat can be the type contained in the barcodes 165, thereby linking theinstant ticket prize values with an associated account number 921.

As with the cards 100, the block can contain a larger number of accountnumbers 921 than the total number of tickets 900 so as to allow forwaste that typically occurs during the printing process. Therefore inthis embodiment, after the print run is concluded at a block 941 and thedesired number of cards 900 are printed, the lottery printinginstitution, as shown at 941 will transmit as shown at a block 942 thesubset of account numbers 921 actually printed along with the associatedcredit to be deposited with each account number 921 to the issuinginstitution.

Next in this example, as shown at a block 944, the lottery printingorganization then physically ships the printed tickets to the lottery'swarehouse for distribution to the retailer or other designated outlets.When the tickets are shipped to the retailers, or, when the retailersactivate packs of the tickets 900, here assuming pack activation islogged by the lottery, the lottery transmits the listing of all shippedand activated instant ticket inventory control numbers as shown at ablock 943 to the lottery ticket printing institution. The lottery ticketprinting institution then can link the inventory control numbers 165 tothe printed set of closed payment account numbers 921 as shown at ablock 943 using a secure algorithm typically used for this purpose inthe instant lottery industry. It is also desirable to ensure that theset of account numbers 941 associated with the inventory control numbers165 is maintained in a secure fashion to maintain security againstpick-outs. As depicted at a block 943 the resulting list of accountnumbers 921 is then transmitted to the issuing institution foractivation at that time or later at the time of sale of the cards 900.

Preferably, as shown at a block 945, upon receipt of the account numbersto be activated, the institution invoices the lottery 946 for thenecessary funds to be deposited into the card accounts. Alternatively,the institution can invoice the lottery ticket printing institution fortransfer of funds. Still another possibility is for the lottery todeposit all funds for all accounts at one time. This method has theadvantage of fewer interactions, but with the disadvantage of moving alarge sum of money at one time. In any case, the funds are preferablydeposited when the accounts are activated as indicated at a block 948.It should be noted that since the funds are applied to a closed paymentsystem, a substantial discount can be realized between the printedvalues 922 of the closed payment cards 910 and the actual fundstransferred to the institution. This is possible because the closedpayment funds can only be spent at the specified vendor(s) 902 andtherefore these institutions can keep the normal credit card liketransaction fees as well as improve its cash flow by holding the closedpayment funds until the consumer makes a purchase.

At this point in the example of FIG. 31, as illustrated by a block 947,the retailers place the received tickets on sale and after whichconsumers, as shown at a block 947, purchase the card 900. Then theconsumer scratches off the SOC 920 and reads the amount 922 deposited onthe closed payment card 910 as well as the account number 921 and anyother identifying information. The consumer can then use thisinformation to execute transactions as shown at a block 950, which areapproved by the issuing institution 951.

FIG. 32 illustrates an alternative method of producing and sellinghybrid instant ticket and closed payment cards of the type 900 withoutthe participation of a lottery institution. In this case the hybridinstant ticket and closed payment cards 900 are distributed within anexisting distribution network. FIG. 32 includes an embodiment of amechanism for organizing the account numbers 921 and synchronizingdeposits with the closed payment institution for this alternativemethod. Beginning at a block 960, the institution responsible forissuing the closed payment card account numbers 921 creates andtransmits a large block of the closed payment card account numbers 921to the institution responsible for printing the tickets. Next, asrepresented at a block 961, the ticket printing institution merges theblock of closed payment card account numbers 921 with a set of instantticket inventory control numbers 165, thereby linking the instant ticketprize values with an associated account number 921.

As with the method of FIG. 31, the block can contain a larger number ofclosed payment card account numbers 921 than the total number of tickets900. Therefore in this embodiment, after the print run is concluded at961 and the desired number of cards 900 is printed, the printinginstitution, as shown at a block 961 transmits the subset of accountnumbers 921 actually printed along with the associated credit to bedeposited with each account number 921 to the issuing institution asshown at a block 962.

Next in this example, as shown at a block 963, the printing organizationthen physically ships the printed tickets to a warehouse fordistribution to the retailer base. Again, it is desirable to ensure thatthe set of account numbers 921 associated with inventory control numbers165 is maintained in a secure fashion to maintain security againstpick-outs. As depicted at a block 962 the resulting list of accountnumbers 921 is then transmitted to the issuing institution foractivation 964.

At this point in the example of FIG. 32, as shown at a block 965, theretailers place the received tickets on sale and after which consumers,as shown at a block 966, purchase or otherwise acquire the hybridinstant ticket and closed payment cards 900. The consumer then scratchesoff the SOC 920 and reads the amount 922 deposited on the closed paymentcard 910 as well as the account number 921 and any other identifyinginformation. The consumer can then use this information to executetransactions shown at a block 967, which then can be approved by theissuing institution as shown at a block 968.

It will be appreciated by those skilled in the art in view of thisdescription that changes could be made to the embodiments describedabove without departing from the broad inventive concept thereof. It isunderstood, therefore, that this invention is not limited to theparticular embodiments disclosed, but it is intended to covermodifications within the spirit and scope of the present invention asdefined by the appended claims.

We claim:
 1. A card comprising: a lottery ticket portion; a definedvalue portion having a first predetermined value; an inventory controlserial number portion containing an inventory control serial number; anaccount number applied to the defined value portion, wherein the accountnumber identifies an account having a value that includes the firstpredetermined value and at least a portion of the winning amount of thelottery ticket portion; a cryptographic salt portion; and a scratch-offcoating portion covering at least both the account number portion andthe cryptographic salt portion; wherein data respectively associatedwith both the account number and the cryptographic salt portions areused to activate the card for use.
 2. The card of claim 1, wherein thecryptographic salt portion includes a check digit or character.
 3. Thecard of claim 2, wherein the check digit or character is a modulofunction of both the account number portion and the remainder of thecryptographic salt portion.
 4. The card of claim 1, wherein the accountnumber and the cryptographic salt portion are embodied as barcodeindicia.
 5. The card of claim 4, wherein the barcode indicia areembodied in Code 128 format.
 6. The card of claim 4, wherein the barcodeindicia are embodied in Code 39 format.
 7. The card of claim 4, whereinthe barcode indicia are embodied in Portable Data Format (PDF) 417format.
 8. The card of claim 4, wherein the barcode indicia are embodiedin QR (Quick Response) format.
 9. A card activation system including aset of printed cards comprising; a lottery central site; an instantticket provider; an issuing processor and bank; at least one of aninternet activation web site and a telephone activation system; at leastone card for purchase by a consumer with an account number portioncontaining an account number, a cryptographic salt portion containing acryptographic salt, and an inventory control number portion containingan inventory control number; and a database created by the instantticket provider linking the inventory control number of the set of cardswith the account number and the cryptographic salt; such that any linkbetween the inventory control number and the account number remainsundecipherable until the cryptographic salt is known to the system. 10.The system of claim 9, wherein a hash keyed database is used as acryptographic protocol to correlate card cleartext inventory controlnumbers with hashed values of the account number and the cryptographicsalt.
 11. The system of claim 10, wherein the hash keyed database hashashes that are calculated using a Secure Hash Algorithm Two (SHA-2)format applied to the account number and the cryptographic salt.
 12. Thesystem of claim 9, wherein the cryptographic salt includes a check digitor character.
 13. The system of claim 9, wherein an asymmetricallyencrypted database is used as a cryptographic protocol to correlate cardcleartext inventory control numbers with hashed values of the accountnumber and the cryptographic salt.
 14. The system of claim 9, wherein asymmetrically encrypted database is used as a cryptographic protocol tocorrelate card cleartext inventory control numbers with hashed values ofthe account number and the cryptographic salt.
 15. The system of claim9, wherein a linear congruential generator is used as a cryptographicprotocol to correlate card cleartext inventory control numbers withhashed values of the account number and the cryptographic salt.
 16. Thesystem of claim 15, wherein the cryptographic salt provides a startingseed and number of iterations to the linear congruential generator,wherein the linear congruential generator generates output data thatfunctions as a pointer in the database.
 17. The system of claim 9,further comprising: shipping at least a portion of the cards toretailers for activation; determining which of the cards have beenactivated; linking the account number and the inventory control numberfor each activated card; transmitting the account numbers for theactivated cards to the issuing processor and bank; and performing acryptographic function on the account number and the cryptographic saltto enable at least one of validation and activation of the accountwithout any knowledge of physical logistics of distributing and sellingthe cards.
 18. The system of claim 17, further comprising transmittingto the issuing processor and bank at least a portion of the fundsrequired to redeem the activated cards.
 19. The system of claim 17,wherein printing the cards includes printing a set of packs of cards,wherein each of the packs contains a predetermined number of the cards;the system further comprising: computing a Guaranteed Low End PrizeStructure (GLEPS) value for the packs, wherein the GLEPS value includesthe defined value portion of the cards; and depositing funds to apayment institution equal to the GLEPS value for at least a portion ofthe packs.